Does Anti-Bribery Enforcement Deter Foreign Investment?

9 Pages Posted: 11 Jun 2014 Last revised: 17 May 2018

Date Written: May 11, 2015


We hand-collect data on individual FCPA enforcement actions initiated by the U.S. Department of Justice and use them in a panel difference-in-difference estimator to provide the first systematic empirical evidence that anti-bribery enforcement is followed by a reduction in U.S. fixed capital investments in countries targeted by enforcement actions.

Keywords: Foreign Corrupt Practices Act, Multinational Firms, Cross-Border Mergers, Foreign Direct Investment, Anti-Bribery Legislation

JEL Classification: F2, K2, G3

Suggested Citation

Graham, Brad and Stroup, Caleb, Does Anti-Bribery Enforcement Deter Foreign Investment? (May 11, 2015). Applied Economics Letters, 2015, Available at SSRN: or

Brad Graham

Grinnell College ( email )

1121 Park Street
Grinnell, IA 50112
United States

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